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    The replication package contains two Stata do-files and one dataset. The file "simulation_2025March04" generates the simulation results, while "dataapp_2025Mar08" produces the empirical application results. To replicate the empirical results, you must modify the main directory path in line 10 by replacing "f:\econometrics\WP41_RatioNormEff\application" with your local directory path where the data is stored. Note that Figure 2 is created in Excel. After running the do-file, the nonparametric estimation results will be saved in "nonpara_3d_results_re.xls", which can then be used to generate the figure in Excel.